FINRA Form 211 and Having Your Stock Trading
To get your stock trading, regardless of how you became public, it’s important to get the stock quoted on the Pink Sheets, OTCBB markets or on a stock exchange. For smaller organizations this indicates having the stock trading on the Pink Sheets or OTCBB.
To have a trading industry you will need 1 or much more market makers. This market maker has to be a broker-dealer who is a member of FINRA and registered with the SEC.
To begin trading, one marketplace maker must file a Form 211 with the Financial Business Regulatory Authority, FINRA, and make a market place within your stock.
A FINRA rule says that market makers are usually not supposed to charge any charge for filing a Form 211. We polled each of the market place makers listed on Pink Sheets last year and all of them but a single wanted a $10,000 “due diligence” charge or some such to file the Form 211. Offered the expense and time involved, as well as the likelihood that filing for a fraudulent firm is usually a bad reflection on them, we are able to hardly blame them for wanting to perform due diligence. Besides that, we think a market place maker should be prepared to file a Form 211 if it believed that substantial business would create in trading the stock. Industry makers generate profits mostly on volume.
FINRA processes the Kind 211 and needs that there be adequate non-affiliated shareholders with cost-free trading stock to make trading in the stock achievable. They usually do not want this stock to become concentrated inside a couple of hands.
You’ll have to document in detail how this stock was provided and sold and prove that this was in complete compliance with all the securities laws and guidelines in the SEC …FINRA Form 211 and Having Your Stock Trading Continue Reading >>>